Wal-Mart Stores: “Every Day Low Prices” In China Harvard Case Solution & Analysis

Introduction

            Walmart Stores is basically a United States based retail corporation that has been operating as a discount departmental store. The company has been headquartered in Bentonville, Arkansas, United States. The company was founded by Sam Walton in the year 1962. The company has more than 5,289 retail stores all across the globe.

            In the year 2002, the company became the largest organization in terms of the overall sales it actually generated in the market. In the year 2005, the company reported total net sales of $285 billion. The company has been present in more than nine countries and has more than 1.6 million employees that are present in various countries. Walmart has different types of stores which include the super centers, discount centers, neighbor markets and the warehouse stores.

            Moreover, the company transformed into one of the largest growing organization which has looked to expand itself in the market by actually exploring international expansion with the current concept of offering low priced products with excellent customer service that shall appeal the customers in the international market also. Walmart has developed an image where customer believes that the products offered by the retail store shall be reliable, fresh and low priced.

Problem Statement

            The major problem that has been identified in the case “Wal-Mart Stores: “Every Day Low Prices” In China” is the fact that in spite of being into the ninth year of its operation in the Chinese market, Wal-Mart is still losing money and has been unable to generate revenues in the market.

            Although Wal-Mart has been a successful entity in the United States retail market however, it has been unable to implement the existing business model in Chinese market, which has limited the sales and revenues for Walmart as compared to that of the competitors. Walmart is therefore looking to devise a strategy that shall be implemented by the company to operate in the Chinese market and overcome the threat of competition.

Question 01

Why is Wal-Mart successful in the US? What are Wal-Mart's competitive advantages and its sources?

            The company Walmart has been the most successful organizations in the retail industry worldwide. The major reason of its success has been because of the fact that the company offers low prices as compared to other competitors in the market. Moreover, Walmart has been successful because it has rather focused to present discount to the customers.

            Along with this, another reason, Walmart has been successful because it has been offering branded products at low prices which has gauged in customers to the stores all over the world. The company has looked to open up stores in areas where other retail stores were not available.

            Initially, when Walmart started off its operations, the company looked to penetrate in those areas which did not have stores of this scale, therefore, it actually ensured success of the company in the United States market. Moreover, another success attribute for Walmart in the United States market has been because of the fact that the company has been delivering to the stores rather efficiently and effectively in a timely manner, therefore, it can be said that the success of Walmart in the United States market has been based upon the strong distribution network setup by the firm.

            The major competitive advantage of Wal-Mart has been the fact that it has been opening stores in “one horse” rural areas where other retail giants did not focus; this has been one major competitive advantage which Wal-Mart achieved in the market. Moreover, the company has been offering and actually providing its customers with value and prices.

walmart Case Solution

            The services which customers get at Walmart are unmatchable because the management of Walmart has actually offered its employees regular performance appraisal and has looked to eliminate the communication barrier amongst the managers and the associates. This has been a major competitive advantage for the company.

            Along with this, another major competitive advantage for Walmart has been the fact that the company has looked to introduce technology within its stores. For instance, the company has been adopting different technology instruments to further enhance the element of customer satisfaction. Moreover, the adaptation of RFID was initially introduced by Walmart and since its successful integration within its units; other retail firms have also installed it.....................

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